Title
Authorizing Additional Alternative Home Financing Options for the Infill Housing Program (B)
This item proposes that the City Commission approve additional alternative home financing options for the Infill Housing Program to sell affordable homes to income eligible first-time homebuyers to meet expenditure deadlines required by the U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnership Program (HOME).
Explanation
On January 7, 2010, the City Commission approved sale of five (5) new single-family homes in the Porters Gardens subdivision (Legislative File #090631) to eligible first-time homebuyers. The Porters Gardens subdivision is located in the Porters Community on SW 8th Avenue and on Depot Avenue. The new homes were constructed with HOME Program funding, which requires the sale of the units to low-income households. Since that time, two (2) of the five (5) new homes have been sold to eligible first-time homebuyers. The City currently has in its ownership inventory three (3) units remaining in the Porters Gardens subdivision. Staff has continued to diligently market the three (3) remaining new homes for sale to income eligible homebuyers. Over 100 potential homebuyers have expressed interest in purchasing the new homes, but have not been able to meet the more stringent mortgage lending criteria established by the banking industry. Due to the downturn of the real estate market and increased requirements to obtain primary financing, it has been extremely difficult to assist many of the potential homebuyers that desire to purchase homes, particularly households in the low income levels. Additionally, in accordance with HOME Program regulations, these units must be sold prior to October 31, 2012. If the homes are not sold by this deadline, the City will have to repay approximately $310,000 to HUD from its General Fund for the total HOME Program funds expended to construct these three new homes. Therefore, the three r...
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